Title I Equipment Inventory Requirements LOS A NGE

Title I Equipment Inventory Requirements LOS A NGE LE S UNIFIED SCH OO L DIS TRIC T FEDERAL & S TATE EDU CAT ION PRO GRAMS FEB RUA RY 2017

Objectives To develop a deeper understanding of: Ø Legal Mandates/LAUSD Policy Ø Purpose for Establishing an Inventory Control System Ø Purchasing Equipment Ø Labeling Equipment Ø Maintaining an Equipment Inventory Ø Conducting a Physical Check of Equipment Ø Disposing of Equipment

Legal Mandates Ø Compensatory Education Instrument Tool (CE Item 20) Ø Education Department General Administrative Regulations (EDGAR), § 80. 32 Ø Office of Budget & Management (OMB) Circular A-87, Appendix B, Item 15 Ø CA Education Code, § 35168 Ø CA Code of Regulations, Title 5, § 3946 Ø CA School Accounting Manual (CSAM) Procedures 410 & 770

Recent Audit Findings Ø Schools did not include all required information on inventory: § Cost § Purchase Date § Delivery Date § Information on lost, stolen or salvaged items (Police report or salvage date) Ø There is a 25% chance your school will be audited by an outside firm, there is a 100% chance your school will be reviewed by our office.

LAUSD Policy ØAdhere to the following LAUSD policies: § LAUSD Policy Bulletin 3508. 7: Inventory for Equipment Purchased Through Categorical Programs § LAUSD Bulletin 953: Control of Site Equipment § LAUSD Policy Bulletin 1158. 1: Accounting for Supplies and Equipment Purchases

Purpose for establishing an inventory control system Ø Prevents loss, damage, and theft of property by tracking and monitoring equipment Ø Protects against unauthorized use by assigning equipment for appropriate usage Ø Achieves desired results through effective stewardship of public resources

Purchasing Equipment

Equipment Expenditure Line Items Ø General Supplies-Technology (430001): Equipment costing less than $500, (including tax, shipping and other ancillary charges) Ø Non-Capitalized Equipment (440001): Equipment costing between $500 and $4, 999 (including tax, shipping and other ancillary charges) Ø Capitalized Equipment (640001): Single piece of equipment costing $5, 000 or more* (including tax, shipping and other ancillary charges) Ø*Capitalized equipment is still a restricted item

Purchasing/Leasing Equipment Ø Schools must submit to the LD Title I Coordinator: § SPSA Modification Page or SPSA Plan Page (beginning 2017 -2018) § Vendor Quote § Budget Adjustment Request

Purchasing Equipment Ø All equipment purchases through General Supplies-Technology (430001) or Non-Capitalized Equipment (440001) must be received by May 5, 2017. Ø All schools attempting to purchase equipment must have submitted a completed and correct Categorical Equipment Inventory (CEI) for the prior year. This information will be reviewed by FSEP prior to approving any purchases. Ø All related documentation must be maintained for 5 years. (e. g. , requisitions, POs, invoices)

Labeling Equipment

Red Equipment Labels Ø All categorically-funded equipment costing $500 or more must be labeled § Recommendation: Label “small & attractive” items costing less than $500 Ø Labels can be obtained from FSEP or LD Title I Coordinators ØLabels should be firmly affixed to each item when received and include the following: § Funding Source § School Name § Purchase/Delivery Date § Serial Number

Equipment Inventory

Maintaining a Historical Database Ø All schools must maintain an inventory using the Excel spreadsheet provided by FSEP Ø As new equipment is purchased with categorical funding, it must be immediately added to the inventory Ø The following information must be included for all equipment: § Description (Type/Model) § Serial Number § Purchase Date § Delivery Date § Funding Source § Cost § Location § Current Condition (New, Good, Fair, Poor) § Disposition (Salvaged, Police Report)

Sample Categorical Equipment Inventory

Physical Check of Equipment

Physical Check of Equipment Ø A physical check must be conducted at least once every two years Ø The results of the inventory check must be reconciled with the inventory records Ø The school site must identify staff to conduct the physical check

Submitting your CEI Ø Email the spreadsheet (Attachment B) in excel format to: Federal and State Education Programs (FSEP) after all equipment has been received for the current school year FSEP@lausd. net Subject line: School Name_CEI_2016 -2017

Disposal of Equipment

Disposal of Equipment Ø Must complete Disposal of Equipment Form if Disposition Status is: §Salvaged §Stolen §Unusable Ø Must have the principal’s signature

Removing Equipment from Inventory Ø Equipment that is that has been disposed of may be removed from the school’s Categorical Equipment Inventory after one year of completing Disposal of Equipment (Attachment C of BUL-3508. 7) Ø In the event equipment is lost or stolen, the school must indicate this on the inventory and also complete Disposal of Equipment (Attachment C of BUL-3508. 7). Ø Any loss, damage, or theft of equipment must be investigated. Ø In the event of a theft, the school must also indicate the Police Report Number on the CEI. A Police Report must be filed within 30 days once an item has been considered missing.

NEXT STEPS STARTING NOW: Ø Obtain red Equipment Labels if needed Ø Complete the Categorical Equipment Inventory (Attachment B) by adding all new purchases to last year’s CEI Ø Determine whether a physical check is needed and complete if necessary Ø Complete Disposal form if applicable. See Bul-3508. 7 for guidance in disposal of equipment Ø Email the CEI in excel format to FSEP (FSEP@lausd. net) after all equipment has been received for the current school year. Ø Maintain a copy at the school site.

Questions? Hector Arancibia hja 8803@lausd. net 213. 241. 7041 Jose Jarquin jaj 7955@lausd. net 213. 241. 7045